ANSALAPI - Ansal Properties

📊 NSE: ANSALAPI 🏢 Construction 📅 Last Updated: 12/13/2025 18:21

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations decreased during FY24, leading to a 29% decline in the Debtors Turnover Ratio (from 2.56 to 1.81 times) and a 39% decline in the Inventory Turnover Ratio (from 0.15 to 0.09 times). Specific segment-wise percentage growth is not disclosed.

Geographic Revenue Split

Not disclosed in available documents, though operations are concentrated in North India with specific projects like 'Fernhill' in Gurgaon and 'Serene Residency' in Sector ETA.

Profitability Margins

Operating Profit Margin improved significantly from 19% in FY23 to 44.87% in FY24, a 136% increase. Net Profit Margin shifted from (57.71)% in FY23 to 0.996% in FY24, representing a 102% improvement due to reported profits during the year.

EBITDA Margin

Operating Profit Margin stood at 44.87% for FY24, up from 19% in FY23. This 136% YoY increase was driven by higher operating profits despite a decrease in overall revenue from operations.

Capital Expenditure

Not disclosed in available documents; however, the company reduced its total loans by INR 56.55 Cr (16.6%) from INR 340.55 Cr in FY23 to INR 284.00 Cr in FY24 to manage liquidity.

Credit Rating & Borrowing

The company is facing severe liquidity issues and is undergoing Corporate Insolvency Resolution Process (CIRP). Borrowing costs include a demanded interest rate of 18% per annum on delayed payments to subsidiary ATIL. Finance costs decreased 4.3% YoY to INR 13.76 Cr.

⚙️ Operational Drivers

Raw Materials

Construction materials (steel, cement, bricks) are the primary inputs, though specific percentage costs for each are not disclosed. Total inventory, including construction work-in-progress, stood at INR 2,627.21 Cr.

Capacity Expansion

Current focus is on project completion under CIRP rather than expansion. Key projects include Fernhill (Gurgaon) and Serene Residency. Inventory levels decreased by INR 168.43 Cr (approx 6%) as projects progressed or were revalued.

Raw Material Costs

Construction costs decreased in FY24, contributing to the 39% decline in the Inventory Turnover Ratio. Specific procurement strategies are currently managed by the Resolution Professional.

Manufacturing Efficiency

Inventory Turnover Ratio is extremely low at 0.09 times, indicating slow-moving real estate stock and liquidity constraints affecting project completion speed.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

The company is currently in a defensive/recovery mode under CIRP. Strategy involves the 'Fernhill Project' resolution, settlement of NPA borrowings (e.g., OTS with IFIN for INR 111.36 Cr), and reconciling balances with subsidiaries like Ansal Hi-Tech Townships (INR 7.30 Cr gap).

Products & Services

Real estate products including residential apartments (Fernhill Project, Serene Residency), townships, and commercial properties.

Brand Portfolio

Ansal API

New Products/Services

No new launches reported; focus is on existing 'ongoing and completed real estate projects' and 'unlaunched projects' currently in inventory.

Market Expansion

No expansion planned; the company is focused on resolving insolvency for existing projects in the Delhi-NCR region.

Strategic Alliances

Significant investments in joint ventures and associates valued at INR 490.86 Cr as of March 31, 2024.

🌍 External Factors

Industry Trends

The real estate industry is experiencing a recession, leading to liquidity issues for developers. The company is positioned in a recovery phase, attempting to revive liquidity through OTS and CIRP.

Competitive Landscape

Operates in the highly competitive North India real estate market against other large developers, currently disadvantaged by legal and financial restructuring.

Competitive Moat

The company cites 'Building Lifestyles Since 1967' as a brand heritage moat, but this is currently weakened by a negative net worth and insolvency proceedings.

Macro Economic Sensitivity

Highly sensitive to real estate sector cycles and interest rates. Accumulated losses of INR 1,525.38 Cr are partly attributed to industry-wide recession.

Consumer Behavior

Demand is impacted by project delays; the company is focused on completing projects like Fernhill to restore consumer trust.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RERA; some projects have lapsed registrations under the Haryana RERA Act. Project audits by Asija Associates were mandated by RERA authorities.

Legal Contingencies

The company is in CIRP as of Feb 25, 2025. Pending issues include INR 143.74 Cr owed to subsidiary ATIL and a reconciliation gap of INR 7.30 Cr with Ansal Hi-Tech Townships Limited.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the outcome of the CIRP. Auditor's qualified opinion notes that if unrecognized interest of INR 36.46 Cr was included, the company would report a loss of INR 31.66 Cr instead of a profit.